INDIA – Coca-Cola India has initiated a pilot test for Lemon-Dou, a globally recognized alcoholic ready-to-drink beverage, in select regions of Goa and Maharashtra in an attempt to gain a footing in the alcoholic beverage market.
This bold foray marks a departure from the company’s traditional focus on non-alcoholic beverages, signalling a strategic shift towards becoming a “total beverages company.”
Lemon-Dou, priced at R230 (US$3) for a 250 millilitre can, is a blend of shochu, a distilled liquor similar to brandy and vodka, and lime. Originating from Japan, it falls under the category of ‘chuhai’, an alcoholic cocktail.
“The preparation and distribution of these beverages is done separately in dedicated and independent facilities in India, which are different from the facilities that prepare and distribute its non-alcoholic, ready-to-drink beverages,” stated a Coca-Cola India spokesperson.
Lemon-Dou has found success in various Asian markets, including China and the Philippines and is finally coming to India after three decades of success in other markets.
Manolo Arroyo, Coca-Cola Global marketing chief said, “Alcohol is a big category, and we have on purpose decided to experiment. We’re very clear what kind of beverages consumers are demanding. I call it fuel for the body and the mind.”
Coca-Cola India’s expansion into the alcoholic beverage market is part of wide strategy by The Coca-Cola company to enhance its presence in the sector.
The company recently announced a collaboration with Pernod Ricard to launch a pre-mixed cocktail combining Absolut vodka and Sprite.
Coca-Cola’s broader strategy to diversify its product offerings in the alcohol sector, includes other brands such as the Topo Chico Hard Seltzer and the classic Jack Daniel’s and Coca-Cola mix.
Recognizing the convolutions of the Indian alcohol market, which is both complex and heavily regulated, Coca-Cola plans a gradual expansion while remaining mindful of distribution and manufacturing challenges.
The company aims to establish a responsible and sustainable presence in the alcohol ready-to-drink segment, as stated on its website.
In tandem with its entry into the alcohol market, Coca-Cola is also making significant investments in India.
The company is set to invest R3,000 crore to establish a new plant for beverage bases and concentrates in Sanand, Gujarat, accelerating its presence in the state.
This move follows previous investments made in Gujarat through its bottling partner, Hindustan Coca-Cola Beverages Limited.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
